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Tropicana revises first- and second-lien term loan sizes, pricing
By Sara Rosenberg
New York, Jan. 20 – Tropicana (Naked Juice LLC) upsized its seven-year first-lien term loan to $1.925 billion from $1.9 billion, of which $1.82 billion is funded and $105 million is delayed-draw, revised from $1.75 billion funded and $150 million delayed-draw, according to a market source.
With the change to the first-lien term loan amount, the company downsized its eight-year second-lien term loan to $450 million from $520 million.
In addition, pricing on the first-lien term loan was reduced to SOFR+10 basis points CSA plus 325 bps from SOFR+10 bps CSA plus 375 bps, and pricing on the second-lien term loan was lowered to SOFR+10 bps CSA plus 600 bps from SOFR+10 bps CSA plus 650 bps, the source said.
Furthermore, the original issue discount on the first-lien term loan was tightened to 99.75 from talk in the range of 99 to 99.5 and the discount on the second-lien term loan was changed to 99.5 from 99.
As before, the term loans have a 0.5% floor, ticking fees on the first-lien delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.
Credit Suisse Securities (USA) LLC, BofA Securities Inc., Rabobank, Barclays, RBC Capital Markets, Citigroup Global Markets Inc., Jefferies LLC and SMBC are the arrangers on the deal, with Credit Suisse the left lead on the first-lien and BofA the left lead on the second-lien.
Recommitments were scheduled to be due at 11:30 a.m. ET on Thursday, the source added.
Proceeds will be used to help fund the acquisition of a 61% ownership stake by PAI Partners in juice brands, including Tropicana, Naked and Kevita, from PepsiCo Inc.
The sale will result in combined pre-tax cash proceeds of about $3.3 billion, and PepsiCo will retain a 39% non-controlling interest in the newly formed joint venture.
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